Tactical Investing: The Winning Combination of

Mass Psychology and Technical Analysis

Tactical investing is a process that combines the principles of mass

psychology and technical analysis to help investors make informed,
strategic decisions. By seamlessly blending these two approaches, the
Tactical Investor can get on the right side of the market and make
strategic decisions that are more likely to yield positive results. This
convergence of mass psychology and technical analysis is at the heart of
the Tactical investing approach and is what sets it apart from other
investment strategies.

Emotions play a signi cant role in driving market trends and in uencing
investment decisions, even if many traders prefer to deny this fact. Mass
psychology involves identifying the emotional state of the market and
using this information to predict trends and make informed investment
decisions. By identifying the emotional drivers behind market
movements, we can get ahead of the game and enter investments before
they take off. Technical analysis also plays a role in this process by helping
us to ne-tune our entry points and get into a given investment at the
most favourable price. Together, these strategies can help us make
informed, strategic decisions that are more likely to yield positive results.

In summary, the Tactical Investing methodology is based on the

integration of mass psychology and technical analysis, which allows it to
identify market trends before they happen.  In addition to identifying
trends, the four tools we utilise shown in the infographic below enable us
to pinpoint crucial turning points in the market. This combination has
proven to be highly effective; Over 85% of the plays issued have trended
higher.

The daily charts are close to

trading in the extremely oversold
ranges. Hence an interim bottom
is likely. The ideal scenario calls
for them to rally to the 29 to 30
of this month and then drop
lower into January 2023. Market Update Forum Dec 20, 2022

The easy trade is over; yesterday’s action partially con rms it. This does
not mean that markets can’t run higher; it simply implies that you will
need to work harder for your coin from here onwards. In other words,
volatility levels will surge. Dec 4th update, 2022

The Dow managed to end the week above a key short-term zone of
resistance (32,250); by closing above this level on a weekly basis, it has
set the path for a test of the 34,300 to 34,650 range. Market update
October 31, 2022

If the markets follow the projected path from October, a test of the 9,900
to 10,500 range will probably mark a bottom. In other words, if they
follow the 1973-74 pattern, a test of the above ranges will make for an
enormous opportunity. Will the Nasdaq follow this path; nothing is
written in stone. However, if it were to happen, it would provide a mouth-
watering opportunity for Tactical Investors. Market Update, Sept 11,
2022 

Risk takers should continue holding until the Dow tests the 33,600 to
34K ranges and the Nasdaq trades to 13,500. At that point, all the
higher-risk positions opened should be closed. You can also modify this
trade in line with your trading style. Market Update September 11, 2022

Short term, the markets are entering a corrective phase; the SPX has hit
short-term targets. Former support points turned into resistance which
should turn into zones of support again, albeit on a short-term basis. The
likely pullback targets fall in the 3960 to 4020 with a decent chance of
overshooting as low as 3870. Market Update August 2, 2022

It appears likely that the market will experience two corrections this
year. The rst one, which could already be underway, is expected to occur
in the 1st quarter. The 2nd one is more likely to occur towards the end of
the 3rd quarter to the 4th quarter.

This year, two corrections and lots of volatility would be the best way to
destroy the vast majority of investors and rob them of all their hard-
earned gains. Market update Jan 11, 2022

A period of unusually explosive and irrational price movement is almost

always followed by a brutal bloodletting period. Does this mean
everyone will lose? Note all astute investors will have the chance to get
into many quality companies that will, in some cases, take on gains in the
360 to 560 per cent ranges. Market Update Dec 27, 2021

For now, investors should understand that volatility is a trader’s or

investor’s best friend. Given that V readings are still at sky-high levels,
the Rage index is at a new high, and the GP (Gnosis Panoptes) index is
dangerously close to putting in a new high, the odds are high that the
next few weeks will be lled with volatility. Market Update September
30, 2021

Not one investor in the world can prove that giving into panic paid off
over the long run.  If they dare attempt to take this challenge, this graph
will end any rubbish argument they come out with. The recovery rate
from crash to boom will accelerate as the money supply rises. Look at
how fast the markets recouped from the COVID crash.  Market Update
August 29, 2021

Our rage index surged to a new high just before Afghanistan fell apart. If
the Gnosis Panoptes (GP) index should put in a new high within the next 9
to 18 days, it could indicate that we should be ready for a sharp pullback
in September. It should be sharp and swift, probably ending as fast as it
began. Market update August 21, 2021

Everybody panics when the word correction or crash comes to mind, but
what 99% forget is that those that buy during this phase bank massive
pro ts.  The only intelligent game plan is to look at the masses and take
the opposite stance.  Jump in when they panic and vice versa. This is the
game plan the top players have relied on since the inception of the stock
market.  Market Update Aug 21. 2021

Looking at the two indicators posted below, one can see that the market
is still experiencing a silent correction. The market of disorder could
(“could” being the operative word) be pulling the wool over all the
expert’s eyes. Everyone keeps stating that the market needs to let out
steam, and maybe the opposite might come to pass. We know that
market tops occur when the masses are euphoric. Sentiment analysis
reveals that the herd is far from ecstatic. Additionally, the number of
experts calling for a pullback continues to increase.  Market Update
August 4, 2021 

Not one stock market guru or expert can pull up a long-term chart and
prove that being a bear or sitting on the sidelines paid off. Every crash led
to the birth of a new bull market. Market Update June 18, 2021

The main story that nobody focuses on is how the Fed is creating all these
anomalies. The Fed purposely creates boom and bust cycles by
manipulating the money supply. The average Joe does not understand
what is going on because the “hard money” concept is not taught
anymore.  While the Fed creates Boom and Bust cycles, the focus is more
on the boom because that is where trillions are raked in. The bust just
allows the top players to buy great companies for pennies on the dollar.
How do you think people like Warren Buffett make so much money?
Sadly, the masses don’t understand this insidious trick.

The media works hand in glove with central bankers, so the masses stand
no chance. Investigative journalism is a thing of the past. The only
investigation being done now is to determine which headline will fetch
the most eyeballs. If you understand that, then no one in their right mind
can or should trust what 96% of the media pushes. Market Update June
18 2021

Investors have buried a considerable sum of money into money markets,

and the return is horrible, to say the least. While the Fed might intervene,
our original prediction that individuals seeking safety will be fried and
forced to speculate sooner than later is coming to pass. Eventually, all
this money will start pouring into stocks as there won’t be any other
alternatives. This will provide even more fuel to the current rally. Central
bankers are in a race to debase their currencies, with the goal being to
nish last if possible. The US is best equipped to win this game, for it
dominates on three crucial frontiers. Strongest Army in the world, World
reserve currency status and almost total domination in the AI sector.
Market Update June 3, 2021

What about the “it’s different” this time argument? Rubbish!! that is all
we have to say to anyone coming up with that line. Look at the above
chart. Can you even pinpoint the great depression or the so-called deadly
crash of 1987? Every crash gave birth to a new baby bull. The key to
banking vast sums of money is always to have some cash at hand and,
most importantly, never over-commit funds to a single position. As long
as the trend is on our side, we have to view every pullback through a
bullish lens. Market Update May 12, 2021

If the MACDs complete the bullish crossover at this level, it will create a
pattern that usually results in a fast upward move. The Nasdaq could
then very easily trade to the 14,500 range with a possible overshoot to
15,000. After that, it could shed up to 2000 points before building up
energy to challenge 18,000 ranges. Market Update April 30th, 2021

If the trend is up, no matter how sharply the markets pull back, do not
panic, even if every expert and his grandma are telling you it’s time to ee
for the hills. Market Update March 11, 2021

It is relatively easy to make money in the markets once you have

mastered the art of patience and discipline. Failure to master these two
skills will virtually guarantee a negative outcome. The reason most
investors lose money is that they have no plan. When things look good,
they jump in and vice versa.  Now ask them what makes an investment
look sound or great, and they will reward you with the proverbial idiotic
answer “because the experts” said so. The simple, time-tested
methodology that has never failed over the generations is that one
should never buy when the masses are euphoric and vice versa. Market
Update, Feb 14, 2021 

It is quite likely now that the Nasdaq, which is leading the way up, will
test the 14K plus ranges.  The Nasdaq could end the week above 13390,
and if it does, it is likely to trade to the above targets.  We will issue some
new plays today, but we are only going to get into extremely oversold
stock, and we will only deploy 1/3rd of our funds at this stage.  Market
Update Jan 25, 2021 

Many investors are stating they are itchy to jump into the markets; isn’t
this bloody amazing? When the markets were crashing last year, and we
were telling everyone to buy, they wanted to do the opposite. Now we
are stating that it’s time to hold the gunpowder dry, and they want to
move in the opposite direction again—a classic replay of the secret desire
to lose syndrome in action. Misery loves company, and stupidity simply
demands it. The average mindset is wired to lose, so when you feel sure
about something, check ten times before you get into it. Certainty about
the markets is probably the best signal that you will get hammered.
 Market Update Jan 11, 2021

No change in the Anxiety index, and there is a spike in the number of

individuals in the neutral camp. This informs that a substantial
percentage of traders don’t know what to do or what to expect from the
markets, which is bloody good news. When the markets sell-off, the dumb
money will be doing most of the selling while the smart money will be
waiting for the fear levels to surge, and then they will come in and start
buying. Market Update Dec 31, 2020

Most investors react to disasters by panicking and throwing the baby out
with the bathwater; in recent times, they have thrown the babysitter and
the entire family out too.  Disaster is the code word for opportunity,
especially when it comes to the nancial markets. Lastly, remember how
especially when it comes to the nancial markets. Lastly, remember how
far the Dow has rallied off its low in March; the naysayers only focus on
the pullbacks but not on the big upward moves the market experienced
before the pullback, for if they did, it would shatter their already pathetic
record.  Market Update Nov 13, 2020 

Neutral readings have more or less remained constant since the markets
bottomed. What is worse than fear? Uncertainty. At least when you are
fearful, you have something to focus on. When you are uncertain, you are
like a Yo-Yo swinging from one side of the fence to the other. The longer
the crowd remains sceptical, the higher this market will run. If we had to
make what is sometimes referred to as an educated guess, it is all but
certain that the Nasdaq will trade to and past 15K. Market Update Sept
30, 2020 

Hence with false lters and twisted perceptions, one is creating a reality
that does not exist, and in doing so, one has no hope of upgrading one’s
operating system. Note that we all have operating systems to a degree.
These operating systems determine how you process the data you take
in; this is why one person can see opportunity while the other can only
visualise danger.  Market Update Sept 30, 2020

On the same token, the reason so many Magellan fund subscribers lost
was that they were trying to outdo Lynch. They sold when the going got
tough and purchased the fund when everything looked rosy, the perfect
recipe for destruction.   So, what can we gather from this? That no matter
how good the fund managers are, stupidity trumps logic.  Investors allow
emotions to enter into the equation; the decision to buy is based on
greed, and the decision to sell is based on fear. In essence, the odds of
winning when employing such a strategy are virtually zero. Market
Update Sept 20, 2020

The Dow has shed more than 1500 points from high to low. When a
market sheds weight for three-plus days in a row without any real trigger,
the next step is for the market to attempt to put in a bottom.  Market
Update Sept 9, 2020

As the Dow is all but guaranteed to take out 30K, traders willing to take
on some risk could deploy extra funds in portions into DIA 300 calls (as
high as 340 would be ne) whenever the Dow pulls back strongly. Every
high as 340 would be ne) whenever the Dow pulls back strongly. Every
other index is now playing catch up to the Nasdaq; in a way, it’s sort of
like the dogs of the dow theory, which inadvertently states that every
dog will have its day in the sun.  Another reason that the Dow is lagging
and the Nasdaq is soaring is because the dumb money, which is the vast
majority of players, is still sitting on the sidelines.  Market Update Aug 11,
2020

Don’t fall for the sky is falling hype, for we have a Fed that is hell-bent on
destroying anyone that dares to challenge them. You are going to see
some big names get destroyed before this bull is over as these big names,
in their in nite wisdom, will decide to take on the Fed, and as expected,
the result is that they will end up dead, as in dead broke. Market Update
July 12, 2020 

Helicopter money is here, and nobody is complaining about it; in fact,

they want more and more. It may seem surreal to those with some
semblance of common sense left, but at this stage and for several years to
come, nobody will give a damn about the national debt. Market update
July 12, 2020

So, whatever rubbish they pump out in the news, this pullback will
resolve itself sooner than later because the Fed and its allies will either
come out with new policies to push more money into the markets or
directly intervene by supporting the nancial system.  Market Update
June 12, 2020

 We could be in for a new era in terms of market moves, sharp down days
followed by even sharper reversals. Hence, the overall theme should be
to view every sharp pullback through a bullish lens. Interim market
update June 6th, 2020

There has never been a period where bearish sentiment has remained
negative for weeks on end while the markets continue to soar without
letting out any steam. This insane intervention by the Fed also informs us
that this bull will indeed soar to unimaginable heights. It could very well
end up becoming the modern version of Tulip Mania.  Market update May
31st, 2020

So, prepare yourself mentally to deal with sharp gyrations from time to
time, for the rewards will be huge. We are now in a different market, and
time, for the rewards will be huge. We are now in a different market, and
technical analysis, fundamental analysis, and any type of single analysis
will fail. This is psychological warfare of the highest order. The order is to
change the masses’ perception with a such subtleness that they will think
and believe they arrived at a conclusion that was already chosen for
them.  Market Update May 31, 2020

It appears that markets are experiencing the “backbreaking correction”

one, which every bull market experiences at least once and is often
mistaken for the end of the bull.  While it feels like the end of the world,
such corrections always end with a massive reversal.  Given the current
overreaction to the coronavirus, there is now a 70% probability that
when the Dow bottoms and reverses course; it could tack on 2200 to
3600 points within ten days.   Central bankers are already talking about
another version of shock and awe to boost the markets as they did back
in 2009.  https://yhoo.it/2W4r9GVAs we stated before, the goal is to
lower interest rates and debase the currency; hence, one can expect
many shock and awe programs. Interim Update March 9th, 2020

A sharp pullback is still an outcome we view through a very bullish lens.

The ideal setup calls for the Dow to trade in the 28,800 to 29,000 range,
with a possible overshoot to 29,300. After that, a nice sharp pullback
would set the bedrock for a surge to and possibly well past 30k.  Market
Update Dec 29, 2019

We have a stunning development. The combined score of neutral and

bearish sentiment has surged to 80, which is extremely telling. Consider
that we are trading several 100 percentage points away from the 2009
lows and the masses are almost as scared as they were back in 2009. If
the markets were to crash, it would be the rst time in history a bull
market ended on a note of uncertainty.  History is never kind to the
crowd, and we don’t think that picture will change in the near future.
Market Update Oct 10, 2019
When the trend is positive (UP), train yourself to view strong pullbacks,
corrections and other negative developments through a bullish lens.
Anyone can panic in the face of trouble, but only astute individuals can
stand still and direct their energy to spotting opportunities. Don’t do
what the masses are trained to do, for, after all these years of panic, they
have nothing to show for it. Market Update Sept 15, 2019

The Dow has now dipped below 27K (on a monthly basis).  We see no
reason to worry; investors should continue with their daily lives and
focus on the things that make them smile or leave them peaceful.
Remember, today’s news is nothing but weaponised propaganda and
weaponized news is here to stay.    Tactical Investing Market update July
31, 2019

To embrace the “trend player” methodology, one needs to clear one’s

mind from all the nonsense injected via the Mass media. Secondly,
change the way they used to trade, and lastly, they need to understand
that it takes time. Depending on how open-minded one is, the average
turnaround time falls in the 4-12 week range period.  Remember that
nothing good comes easy, and more importantly, this change will be
permanent. One will know how to sh instead of always waiting for a
handout.  Tactical Investing  Market Update July 24, 2019

Bitcoin is nally showing strength, it has managed to stay above 3900,

and this suggests that a bottom could be in for the year.  There is an
active zone of resistance in the 5850-6150 ranges. If it can manage a
monthly close above $6150, then it will be in a position to test the 6900-
7200 ranges with an overshoot to the 7500-7740 ranges.  Market
Update May  7, 2019 

In such an atmosphere, the main thing you should focus on is the trend; if
the direction is up, then use pullbacks ranging from mild to wild to add to
your long positions.  Hence do not let panic enter the equation if the
market experiences a minor or strong pullback unless the trend changes
and the trend is showing no signs of breaking.  With V readings in the
super Ultra-high ranges, traders should be prepared and ready to deal
with volatile market swings.  Until the trend changes, those shorting the
markets ask for trouble unless they are ready to move quickly.  Market
Update April 13, 2019 
So far in 2019, the number of individuals in the neutral camp has always
surpassed those in the bullish or bearish camps, and this is very revealing.
It clearly indicates that the masses are suffering from a long-term bias
and that the political landscape is messing with their ability to distinguish
reality from ction. Market Update March 31, 2019

This bull market is unlike any other.  Before 2009, one could have relied
on technical studies to more or less call the top of a market,. After 2009,
the game plan changed, and 99% of these traders/experts failed to factor
this into the equation. Technical analysis as a standalone tool would not
work as well as did before 2009 and, in many cases, would lead to a faulty
conclusion. Long story short, there are still too many people pessimistic
(experts, your average Joe and everything in between). Until they start to
embrace this market, most pullbacks ranging from mild to wild will falsely
be mistaken for the big one. Market Update Feb 18, 2019

 The trend is up and showing no signs of weakening. Therefore we must

treat anything the media attempts to market as a disaster as an
opportunity factor. The media is an extension of the mass mindset. For
any con, you need at least two elements, a con artist and a bunch of
idiots. An observer is not part of this equation, for he/she does not
equate with the conman or the idiot. The observer’s function is to
observe and then use the data to plot the most favourable path. Tactical
Investing Market Update Feb 28, 2019 

90% of advisers, experts, and nancial commentators do not know what

they are talking about, which means the same rules apply to the masses.
Want proof? Go back and look at how they repeated the same nonsense
each time the markets crashed and or surged upwards. They screamed
that the world would end when the markets were pulling back. They
alluded that the Milky Way was the next stop for the bull market when it
was rising.

In both cases, they failed to spot the so-called top or the bottom. Why do
you need someone to tell you the obvious? Do you need a jackass to tell
you that the markets are crashing?  The only function these media
wenches/experts serve is to inject emotion into the equation, make the
masses sing right at the top and make them panic right at the bottom. 
 Tactical Investing Market Update Jan 14, 2019
 

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The Tactical Investor does not give individualised market advice. We

publish information regarding companies we believe our readers may be
interested in, and our reports re ect our sincere opinions. However, they
are not intended as personalised recommendations to buy, hold, or sell
securities. Investments in the securities markets, especially options, are
speculative and involve substantial risk. Only you can determine what
level of risk is appropriate for you. Continue to read the disclaimer in full. 

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